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Allah will Tak Boleh Tahan Laughing LOL @ Tak-Halal Dotard-Shale-Oil firms All Going Bankrupted! GVGT!
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https://www.wsj.com/articles/pionee...ation-of-modified-chapter-11-plan-11589301070
Pioneer Energy Wins Confirmation of Modified Chapter 11 Plan
Lenders to buy a big chunk of newly issued Pioneer debt from bondholders under new plan
By
May 12, 2020 12:31 pm ET
Pioneer Energy Services Corp. has won court approval for a modified chapter 11 exit plan after plummeting oil prices forced the company’s lenders and bondholders back to the bargaining table to renegotiate their “prepackaged” restructuring deal.
https://edition.cnn.com/2020/04/30/business/oil-bankruptcies-default/index.html
Pioneer Energy Wins Confirmation of Modified Chapter 11 Plan
Lenders to buy a big chunk of newly issued Pioneer debt from bondholders under new plan
By
May 12, 2020 12:31 pm ET
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Text
Pioneer Energy Services Corp. has won court approval for a modified chapter 11 exit plan after plummeting oil prices forced the company’s lenders and bondholders back to the bargaining table to renegotiate their “prepackaged” restructuring deal.
https://edition.cnn.com/2020/04/30/business/oil-bankruptcies-default/index.html
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http://energyfuse.org/shale-bankruptcies-to-accelerate/
Shale Bankruptcies to Accelerate
by Nick Cunningham | May 04, 2020
The U.S. rig count has collapsed, falling by 384 rigs since mid-March. That is a decline of almost half in the span of just a few weeks, with the Permian basin suffering a particularly concentrated hollowing out.
Production is already declining because of low prices and dwindling storage space. But WTI prices at $20 per barrel or below is entirely unsustainable for U.S. shale drillers. Ultimately, a lot of companies will be forced into bankruptcy.
Bankruptcies could skyrocket
More than 200 North American oil and gas companies already went bankrupt between 2015 and the end of 2019. By that measure, the shale industry was in financial distress even prior to the global pandemic and oil market meltdown.
But the collapse of prices presents an altogether different threat to U.S. oil and gas. These are price levels at which most U.S. shale companies will not only struggle to turn a profit, but may not even be able to keep the lights on. Nearly 40 percent of drillers told the Federal Reserve Bank of Kansas City that they would be insolvent before the year was out if WTI averaged $30 per barrel.
The problem is that WTI at $30, let alone $45, is looking a little optimistic. WTI is trading at about $20 per barrel at the start of May and futures for every month left in 2020 have prices below $30.
Fitch Ratings has said that companies could default on around $43 billion in high-yield bonds and leveraged loans this year.
Some high-profile bankruptcies have already occurred. On April 1, Whiting Petroleum, a large Denver-based shale company, declared bankruptcy. On April 26, Diamond Offshore filed for bankruptcy protection as the market for offshore drilling “worsened precipitously,” the company said.
Chesapeake Energy is making preparations for a potential Chapter 11 bankruptcy filing. The Oklahoma-based company arguably represents the U.S. shale boom better than any other company. It scaled up by taking on debt and growing at an explosive rate, buying land and drilling at a frenzied rate while struggling to turn a profit. The company’s long slide may soon culminate with a bankruptcy, a prospect that S&P Global Ratings said was a “virtual certainty.”
Production declines set in
But there is still a lot of debate about how far U.S. shale will fall. Production is already declining quickly, due to shrinking availability of storage. EIA data suggests output fell from 13 million barrels per day (Mb/d) to 12.1 Mb/d in just a few weeks. The rig count could soon drop to decade lows or even all-time lows. Forecasts of production losses run the gamut, but they all point down.
The extent of the production losses will help determine how quickly the oil market reaches some sort of “balance.” Goldman Sachs says that Brent oil prices could rebound as high as $65 per barrel by the fourth quarter of 2021. But it will only be able to do that because of the substantial decline in U.S. shale output. “Higher decline rates, sticky shut-in capacity losses and a much higher cost of capital for the industry will finally set the stage for both higher OPEC market share and prices, the structural consequence of the ongoing violent rebalancing,” Goldman analysts wrote in a recent note to clients.
Sunnier days for oil prices also depend on a return of oil demand, which, needless to say, depends on a rebound in economic activity. But the bottom line is that the economy is at the mercy of the global pandemic, which, at last check, was showing no signs of going away.
https://www.houstonpublicmedia.org/...oil-and-gas-bankruptcies-could-be-on-the-way/
Oil And Gas Companies Have Begun Filing For Bankruptcy. Here’s Why More Could Be On The Way.
As Texas oil continues to trade under $25 per barrel, one bankruptcy expert says more companies could find themselves in jeopardy of going under.
Kyra Buckley | Posted on May 11, 2020, 11:18 AM
AP Photo/Eric Gay
A pumpjack sits idle at sunset in Falls City, Texas, Thursday, April 23, 2020. The oil industry continues to suffer due to the ongoing COVID-19 outbreak. (AP Photo/Eric Gay)
Houston oil and gas companies are reporting billions in losses for the first quarter of 2020, and the next few months are not looking much better. As Texas oil continues to hover around $20-25 per barrel, companies are slashing budgets and cutting workers.
Houston-based Diamond Offshore Drilling has already filed for Chapter 11 bankruptcy amid the conoronavirus pandemic. And experts who watch the industry say more bankruptcies are on the way.
Charlie Beckham specializes in oil and gas bankruptcies at Haynes and Boone in Houston. He spoke with energy reporter Kyra Buckley about why companies are vulnerable during the oil price crash.
Listen
00:00 /04:14
To embed this piece of audio in your site, please use this code:
<iframe src="https://embed.hpm.io/369221/369209" style="height: 115px; width: 100%;"></iframe>
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You can listen to the interview above. Here are some highlights, edited for length and clarity:
What are some of the things oil companies do to prevent being in the position to go bankrupt?
One way is to have no debt. Unfortunately for all of the companies that are in the industry, except for a very few, they all have some amount of debt for their continuing operations. It’s a common aspect of the industry that an exploration and production company borrows money. I think many, many of the oil companies here in Houston and across the country have been caught with a decrease in the price for the oil that they sell compared to the amount of debt they’re carrying on their books.
The oil and gas industry was still recovering from the 2015 price crash. Does that mean some companies may be in more vulnerable situations?
The challenge for so many companies that were able to survive the downturn in the 2015 to 2017 era is that they didn’t eliminate all of the debt on their books. They kept what many consider to be a manageable amount of debt for purposes of operations. That was all premised on a belief that by 2019, 2020, commodity prices would return to a manageable level.
Some have said companies are in this situation also because of so-called cheap debt. Can you explain what they mean by that?
Where you saw a lot of the interest in the oil and gas industry over the last 10 years was from investors who flooded money into the only gas industry generally on a junior basis — meaning they loaned money to oil and gas companies at generally low interest rates with an expectation that there was such tremendous cash flow in the oil and gas industry that it would be easy for companies to repay those loans on a timely basis. That simply has not happened.
Instead, you’ve had what we’ve seen the last month of oil going negative, which was an anomaly. But still oil is low today, in the $20s, and it’s simply not high enough to repay the billions of dollars of debt that was invested in the industry over the last decade.
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Tags bankruptcies Charlie Beckham Haynes and Boone oil and gas oil price crash
Related
Wednesday’s Show: The Week In Politics, And Observing Ramadan At Home (May 13, 2020)
Special Edition: Professor Dietrich von Biedenfeld (May 12, 2020)
Friday’s Show: Halliburton Layoffs, And Lasting Changes From The Pandemic (May 8, 2020)
Political Roundup: Reopening Further, Rent Relief, And Capping Oil Production
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Shale Bankruptcies to Accelerate
by Nick Cunningham | May 04, 2020
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- Tweet
The U.S. rig count has collapsed, falling by 384 rigs since mid-March. That is a decline of almost half in the span of just a few weeks, with the Permian basin suffering a particularly concentrated hollowing out.
Production is already declining because of low prices and dwindling storage space. But WTI prices at $20 per barrel or below is entirely unsustainable for U.S. shale drillers. Ultimately, a lot of companies will be forced into bankruptcy.
Bankruptcies could skyrocket
More than 200 North American oil and gas companies already went bankrupt between 2015 and the end of 2019. By that measure, the shale industry was in financial distress even prior to the global pandemic and oil market meltdown.
But the collapse of prices presents an altogether different threat to U.S. oil and gas. These are price levels at which most U.S. shale companies will not only struggle to turn a profit, but may not even be able to keep the lights on. Nearly 40 percent of drillers told the Federal Reserve Bank of Kansas City that they would be insolvent before the year was out if WTI averaged $30 per barrel.
That assessment comports with other forecasts. More than 70 U.S. oil and gas companies could fall into bankruptcy this year if WTI averages $30 per barrel, according to an April analysis from Rystad Energy. If WTI remains stuck at $30 through 2021, the number of bankruptcies would balloon to 150 to 200 companies. “In our view we will need WTI prices of $40 to $45 per barrel to eliminate the upcoming explosion in the number of financially distressed US E&Ps,” Rystad Energy’s Head of Shale Research Artem Abramov said at the time.
The problem is that WTI at $30, let alone $45, is looking a little optimistic. WTI is trading at about $20 per barrel at the start of May and futures for every month left in 2020 have prices below $30.
Fitch Ratings has said that companies could default on around $43 billion in high-yield bonds and leveraged loans this year.
Some high-profile bankruptcies have already occurred. On April 1, Whiting Petroleum, a large Denver-based shale company, declared bankruptcy. On April 26, Diamond Offshore filed for bankruptcy protection as the market for offshore drilling “worsened precipitously,” the company said.
Chesapeake Energy is making preparations for a potential Chapter 11 bankruptcy filing. The Oklahoma-based company arguably represents the U.S. shale boom better than any other company. It scaled up by taking on debt and growing at an explosive rate, buying land and drilling at a frenzied rate while struggling to turn a profit. The company’s long slide may soon culminate with a bankruptcy, a prospect that S&P Global Ratings said was a “virtual certainty.”
The demise of Chesapeake is a fitting bookend to the latest chapter of U.S. shale. While the entire global oil industry is facing a massive crisis, and a substantial portion of conventional output is also at risk with low prices, the U.S. shale bonanza is decidedly over. That doesn’t mean production will go to zero, to be sure. But borrowing tens of billions of dollars from Wall Street to frack wells with questionable returns is a business model that has run its course. Drilling will surely resume at some point, but it will be done by fewer companies drilling fewer wells. Consolidation will sweep over the shale patch.
Production declines set in
But there is still a lot of debate about how far U.S. shale will fall. Production is already declining quickly, due to shrinking availability of storage. EIA data suggests output fell from 13 million barrels per day (Mb/d) to 12.1 Mb/d in just a few weeks. The rig count could soon drop to decade lows or even all-time lows. Forecasts of production losses run the gamut, but they all point down.
The extent of the production losses will help determine how quickly the oil market reaches some sort of “balance.” Goldman Sachs says that Brent oil prices could rebound as high as $65 per barrel by the fourth quarter of 2021. But it will only be able to do that because of the substantial decline in U.S. shale output. “Higher decline rates, sticky shut-in capacity losses and a much higher cost of capital for the industry will finally set the stage for both higher OPEC market share and prices, the structural consequence of the ongoing violent rebalancing,” Goldman analysts wrote in a recent note to clients.
Sunnier days for oil prices also depend on a return of oil demand, which, needless to say, depends on a rebound in economic activity. But the bottom line is that the economy is at the mercy of the global pandemic, which, at last check, was showing no signs of going away.
https://www.houstonpublicmedia.org/...oil-and-gas-bankruptcies-could-be-on-the-way/
Oil And Gas Companies Have Begun Filing For Bankruptcy. Here’s Why More Could Be On The Way.
As Texas oil continues to trade under $25 per barrel, one bankruptcy expert says more companies could find themselves in jeopardy of going under.
Kyra Buckley | Posted on May 11, 2020, 11:18 AM
AP Photo/Eric Gay
A pumpjack sits idle at sunset in Falls City, Texas, Thursday, April 23, 2020. The oil industry continues to suffer due to the ongoing COVID-19 outbreak. (AP Photo/Eric Gay)
Houston oil and gas companies are reporting billions in losses for the first quarter of 2020, and the next few months are not looking much better. As Texas oil continues to hover around $20-25 per barrel, companies are slashing budgets and cutting workers.
Houston-based Diamond Offshore Drilling has already filed for Chapter 11 bankruptcy amid the conoronavirus pandemic. And experts who watch the industry say more bankruptcies are on the way.
Charlie Beckham specializes in oil and gas bankruptcies at Haynes and Boone in Houston. He spoke with energy reporter Kyra Buckley about why companies are vulnerable during the oil price crash.
Listen
00:00 /04:14
To embed this piece of audio in your site, please use this code:
<iframe src="https://embed.hpm.io/369221/369209" style="height: 115px; width: 100%;"></iframe>
X
You can listen to the interview above. Here are some highlights, edited for length and clarity:
What are some of the things oil companies do to prevent being in the position to go bankrupt?
One way is to have no debt. Unfortunately for all of the companies that are in the industry, except for a very few, they all have some amount of debt for their continuing operations. It’s a common aspect of the industry that an exploration and production company borrows money. I think many, many of the oil companies here in Houston and across the country have been caught with a decrease in the price for the oil that they sell compared to the amount of debt they’re carrying on their books.
The oil and gas industry was still recovering from the 2015 price crash. Does that mean some companies may be in more vulnerable situations?
The challenge for so many companies that were able to survive the downturn in the 2015 to 2017 era is that they didn’t eliminate all of the debt on their books. They kept what many consider to be a manageable amount of debt for purposes of operations. That was all premised on a belief that by 2019, 2020, commodity prices would return to a manageable level.
Some have said companies are in this situation also because of so-called cheap debt. Can you explain what they mean by that?
Where you saw a lot of the interest in the oil and gas industry over the last 10 years was from investors who flooded money into the only gas industry generally on a junior basis — meaning they loaned money to oil and gas companies at generally low interest rates with an expectation that there was such tremendous cash flow in the oil and gas industry that it would be easy for companies to repay those loans on a timely basis. That simply has not happened.
Instead, you’ve had what we’ve seen the last month of oil going negative, which was an anomaly. But still oil is low today, in the $20s, and it’s simply not high enough to repay the billions of dollars of debt that was invested in the industry over the last decade.
Share
Tags bankruptcies Charlie Beckham Haynes and Boone oil and gas oil price crash
Related
Wednesday’s Show: The Week In Politics, And Observing Ramadan At Home (May 13, 2020)
Special Edition: Professor Dietrich von Biedenfeld (May 12, 2020)
Friday’s Show: Halliburton Layoffs, And Lasting Changes From The Pandemic (May 8, 2020)
Political Roundup: Reopening Further, Rent Relief, And Capping Oil Production
Most Viewed
- Oil And Gas Companies Have Begun Filing For Bankruptcy. Here’s Why More Could Be On The Way.
- Harris County Clerk Diane Trautman Resigns
- Where You Can Get Tested for COVID-19 In The Houston Area
- Is 2020 The Year Texas Becomes A Battleground State?
- How Music Therapists Helped A Mother Connect With The Newborn She Still Hasn’t Met
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https://www.houstonchronicle.com/bu...l-Gas-files-for-Ch-11-bankruptcy-15265661.php
Freedom Oil and Gas files for Chapter 11 bankruptcy
Paul Takahashi May 13, 2020 Updated: May 13, 2020 5 a.m.
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An oil rig at sunset in Midland, Texas Tuesday, June 27, 2017, in Midland. ( Steve Gonzales / Houston Chronicle )
Photo: Steve Gonzales, Staff Photographer / Houston Chronicle
Freedom Oil and Gas became the latest victim of the oil crash as it filed for bankruptcy protection.
The Houston oil exploration and production company, formerly known as Maverick Drilling Services, filed for Chapter 11 bankruptcy on Monday in federal court in Houston. The company said it was unable to pay its more than $10 million of debt as revenues have plunged during the global coronavirus pandemic. It plans to sell all of its assets to Australian environmental services company Sendero Resources, pending approval from the bankruptcy court.
MORE ON OIL: Can shale survive another bust?
Freedom joins other U.S. energy companies, including Whiting Petroleum, Skylar Exploration and Diamond Offshore, that have filed for bankruptcy protection as the coronavirus has spurred a historic oil industry collapse. The pandemic, which has forced businesses to temporarily close and consumers to stay home, has depressed the demand for oil and gas products, causing prices to plummet.
Freedom Oil and Gas, the U.S. subsidiary of Australian company Freedom Oil and Gas Ltd., is an independent oil and gas company focused on leasing, developing and drilling wells in the Eagle Ford Shale in South Texas. The company’s assets consist of about 2,682 acres of oil and gas mineral leases, including 18 producing wells in Dimmit County, southwest of San Antonio.
CORONAVIRUS UPDATES: Stay informed with accurate reporting you can trust on HoustonChronicle.com
Freedom Oil and Gas files for Chapter 11 bankruptcy
Paul Takahashi May 13, 2020 Updated: May 13, 2020 5 a.m.
Facebook Twitter Email LinkedIn Reddit Pinterest
Comments
An oil rig at sunset in Midland, Texas Tuesday, June 27, 2017, in Midland. ( Steve Gonzales / Houston Chronicle )
Photo: Steve Gonzales, Staff Photographer / Houston Chronicle
Freedom Oil and Gas became the latest victim of the oil crash as it filed for bankruptcy protection.
The Houston oil exploration and production company, formerly known as Maverick Drilling Services, filed for Chapter 11 bankruptcy on Monday in federal court in Houston. The company said it was unable to pay its more than $10 million of debt as revenues have plunged during the global coronavirus pandemic. It plans to sell all of its assets to Australian environmental services company Sendero Resources, pending approval from the bankruptcy court.
MORE ON OIL: Can shale survive another bust?
Freedom joins other U.S. energy companies, including Whiting Petroleum, Skylar Exploration and Diamond Offshore, that have filed for bankruptcy protection as the coronavirus has spurred a historic oil industry collapse. The pandemic, which has forced businesses to temporarily close and consumers to stay home, has depressed the demand for oil and gas products, causing prices to plummet.
Freedom Oil and Gas, the U.S. subsidiary of Australian company Freedom Oil and Gas Ltd., is an independent oil and gas company focused on leasing, developing and drilling wells in the Eagle Ford Shale in South Texas. The company’s assets consist of about 2,682 acres of oil and gas mineral leases, including 18 producing wells in Dimmit County, southwest of San Antonio.
CORONAVIRUS UPDATES: Stay informed with accurate reporting you can trust on HoustonChronicle.com
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Yankeeland, ah tiong land, kangaroo land should use the opportunity to build more oil storage n expend it's strategic oil reserves to last at least a year. It will provide employment n expend the domestic steel n manufacturing industries
Australia to boost fuel security and establish national oil reserve
The Australian Government is boosting the nation’s long-term fuel security by taking advantage of dramatic falls in global oil prices and building on our historic agreement with the United States to access their Strategic Petroleum Reserve (SPR).
Under the new measures, Australia will establish its first Government-owned oil reserves for domestic fuel security.
This will include a deal with the United States to store Australian Government owned crude oil in the US SPR.
Minister for Energy and Emissions Reduction Angus Taylor said the Government would also work with the private sector to consider options for improving domestic fuel security, and would work with refineries on temporary measures to ease the stockpiles of jet fuel by amending fuel standards under the Fuel Quality Standards Act.
“The Government is taking action to improve Australia’s fuel security and enhance our ability to withstand global shocks, such as the COVID-19 pandemic, when they reach our shores,” Minister Taylor said.
“Australians can be reassured there is plenty of fuel in the country and we are extremely well placed to keep supplies flowing through the COVID-19 pandemic.
“The new measures will take advantage of the current low prices for oil and Australia’s privileged position of access to the SPR, which is amongst the world’s most cost-effective long-term oil storage facilities. This work is a down payment on a stronger and more secure fuel supply for Australian households, motorists, industry and the national economy.
“Today’s announcement delivers immediate and medium-term measures that form a framework for a highly successful and domestically-centred approach to fuel security, which will underpin our economic prosperity for the next decade and beyond.”
Global oil prices have hit new lows due mainly to a significant drop in demand caused by the COVID-19 pandemic and a lack of cost-effective long-term storage options.
Australia has been negotiating access to the SPR since 2018, with Minister Taylor and US Energy Secretary Dan Brouillette signing the first arrangement of its kind to facilitate this deal in March of this year.
Australia will spend $94 million to buy oil at the current low global prices. Australia has access to hold oil in the US SPR for an initial period of 10 years.
Minister Taylor said the Government would shortly launch a process to work with the private sector to identify the best options for further strengthening fuel security in Australia. Terms of reference to guide this process will be released in due course and will focus on investment options, supporting the refining sector and assessing the most effective stimulatory options.
To help refineries, the Government will work on a temporary change in fuel standards to provide refiners with more flexibility to adapt their operations to manage the changes in demand and oil prices as a result of COVID-19. Any change will be closely managed to ensure refiners have increased flexibility while motorists and the environment are protected.
“The temporary change provides Australian refineries with flexibility and can assist them to shore up their viability by helping them resolve some storage and supply issues,” Minister Taylor said.
At the end of February, Australia had 81 days’ worth of oil supplies, including 25 days of stocks in overseas ports and in transit to Australia.
The oil held in the SPR will count towards Australia’s IEA 90 day stockpiling commitment.
Today’s COVID-19 fuel security package includes:
Australia to boost fuel security and establish national oil reserve
The Australian Government is boosting the nation’s long-term fuel security by taking advantage of dramatic falls in global oil prices and building on our historic agreement with the United States to access their Strategic Petroleum Reserve (SPR).
Under the new measures, Australia will establish its first Government-owned oil reserves for domestic fuel security.
This will include a deal with the United States to store Australian Government owned crude oil in the US SPR.
Minister for Energy and Emissions Reduction Angus Taylor said the Government would also work with the private sector to consider options for improving domestic fuel security, and would work with refineries on temporary measures to ease the stockpiles of jet fuel by amending fuel standards under the Fuel Quality Standards Act.
“The Government is taking action to improve Australia’s fuel security and enhance our ability to withstand global shocks, such as the COVID-19 pandemic, when they reach our shores,” Minister Taylor said.
“Australians can be reassured there is plenty of fuel in the country and we are extremely well placed to keep supplies flowing through the COVID-19 pandemic.
“The new measures will take advantage of the current low prices for oil and Australia’s privileged position of access to the SPR, which is amongst the world’s most cost-effective long-term oil storage facilities. This work is a down payment on a stronger and more secure fuel supply for Australian households, motorists, industry and the national economy.
“Today’s announcement delivers immediate and medium-term measures that form a framework for a highly successful and domestically-centred approach to fuel security, which will underpin our economic prosperity for the next decade and beyond.”
Global oil prices have hit new lows due mainly to a significant drop in demand caused by the COVID-19 pandemic and a lack of cost-effective long-term storage options.
Australia has been negotiating access to the SPR since 2018, with Minister Taylor and US Energy Secretary Dan Brouillette signing the first arrangement of its kind to facilitate this deal in March of this year.
Australia will spend $94 million to buy oil at the current low global prices. Australia has access to hold oil in the US SPR for an initial period of 10 years.
Minister Taylor said the Government would shortly launch a process to work with the private sector to identify the best options for further strengthening fuel security in Australia. Terms of reference to guide this process will be released in due course and will focus on investment options, supporting the refining sector and assessing the most effective stimulatory options.
To help refineries, the Government will work on a temporary change in fuel standards to provide refiners with more flexibility to adapt their operations to manage the changes in demand and oil prices as a result of COVID-19. Any change will be closely managed to ensure refiners have increased flexibility while motorists and the environment are protected.
“The temporary change provides Australian refineries with flexibility and can assist them to shore up their viability by helping them resolve some storage and supply issues,” Minister Taylor said.
At the end of February, Australia had 81 days’ worth of oil supplies, including 25 days of stocks in overseas ports and in transit to Australia.
The oil held in the SPR will count towards Australia’s IEA 90 day stockpiling commitment.
Today’s COVID-19 fuel security package includes:
- Purchasing crude oil to store in the US SPR;
- Launching a process to work with the private sector to identify options to further strengthen our domestic fuel security; and
- Working on changes to the fuel standards to provide immediate relief to refineries for the duration of the COVID-19 pandemic.
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And suddenly when the economy go boom again, oil will spike above usd100/bbl.
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There will be ENDLESS CYCLE of COVID SURGE because as long as the numbers went a bit lower the DESPERATE GOVERNMENTS WILL RE-OPEN & LIFT CONTROL MEASURES to save ECONOMY. And that cause COVID to SURGE UP AGAIN. This cycle will BE REPEATED ENDLESSLY.
Fucking Joke in the world got crude oil to sell still can go fucking bankrupted. Reality is madness. I tot only the IMH patients will tell such rubbish stories.